A-50458, AUGUST 15, 1933, 13 COMP. GEN. 52

A-50458: Aug 15, 1933

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AS FOLLOWS: THERE ARE THIRTY-SEVEN EMPLOYEES OF THE FARM CREDIT ADMINISTRATION LOCATED IN THE CROP PRODUCTION LOAN OFFICE. WHO ARE RECEIVING NET SALARIES LESS THAN $14 PER WEEK. IT IS MY DESIRE TO INCREASE THE SALARIES OF THESE EMPLOYEES TO THAT RATE. THE BASE PAY RATES OF THE EMPLOYEES IN QUESTION ARE AS FOLLOWS: 10 MESSENGERS AT $600. THE QUESTION IS SUBMITTED FOR YOUR CONSIDERATION AND DECISION AS TO: 1. THE CROP PRODUCTION LOAN OFFICE IS UNDERSTOOD TO HAVE BEEN AN ADMINISTRATIVELY CREATED ORGANIZATION TO ADMINISTER THE VARIOUS STATUTES AUTHORIZING THE SECRETARY OF AGRICULTURE TO MAKE LOANS FOR CROP PRODUCTION. THE EMPLOYEES THUS TRANSFERRED TO THE FARM CREDIT ADMINISTRATION WERE SUBJECT TO THE RESTRICTIONS AND LIMITATIONS OF THE ECONOMY ACT.

A-50458, AUGUST 15, 1933, 13 COMP. GEN. 52

NATIONAL INDUSTRIAL RECOVERY ACT - APPLICATION TO FEDERAL EMPLOYEES - MINIMUM WAGE THE RESTRICTION CONTAINED IN SECTION 7 OF THE ACT OF MARCH 3, 1933, 47 STAT. 1515, AGAINST ADMINISTRATIVE PROMOTION DURING THE FISCAL YEAR 1934, REMAINS APPLICABLE TO THE EMPLOYEES OF THE FORMER CROP PRODUCTION LOAN OFFICE OF THE DEPARTMENT OF AGRICULTURE AFTER TRANSFER TO THE FARM CREDIT ADMINISTRATION PURSUANT TO THE EXECUTIVE ORDER OF MARCH 27, 1933, AND PRECLUDES ADOPTION FOR THEM OF THE MINIMUM WAGE FIXED BY THE INDUSTRIAL CODES IF RESULTING IN AN INCREASE IN COMPENSATION.

COMPTROLLER GENERAL MCCARL TO THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION, AUGUST 15, 1933:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 9, 1933, AS FOLLOWS:

THERE ARE THIRTY-SEVEN EMPLOYEES OF THE FARM CREDIT ADMINISTRATION LOCATED IN THE CROP PRODUCTION LOAN OFFICE, RECENTLY TAKEN OVER FROM THE DEPARTMENT OF AGRICULTURE, WHO ARE RECEIVING NET SALARIES LESS THAN $14 PER WEEK.

IN VIEW OF THE PRESIDENT'S RECOMMENDATIONS TO INDUSTRIAL EMPLOYERS, IN CONNECTION WITH THE NATIONAL RECOVERY CAMPAIGN, THAT MINIMUM SALARIES PAID TO EMPLOYEES BE NOT LESS THAN $14 PER WEEK, IT IS MY DESIRE TO INCREASE THE SALARIES OF THESE EMPLOYEES TO THAT RATE, IF IT MAY BE DONE LEGALLY. THE BASE PAY RATES OF THE EMPLOYEES IN QUESTION ARE AS FOLLOWS:

10 MESSENGERS AT $600.

TABLE

22 MESSENGERS AT $720.

5 STENOGRAPHERS AT $840.

THE QUESTION IS SUBMITTED FOR YOUR CONSIDERATION AND DECISION AS TO:

1. WHETHER THE RATES MAY BE INCREASED WITHOUT VIOLATION OF SECTION 7 OF THE ACT OF MARCH 3, 1933 (PUB. 428), FORBIDDING ADMINISTRATIVE PROMOTIONS; AND

2. WHETHER THE RATES MAY BE LEGALLY CHANGED, IN VIEW OF THE FACT THAT THE EXECUTIVE ORDER CREATING THE FARM CREDIT ADMINISTRATION AUTOMATICALLY PLACED THE POSITIONS HELD BY THOSE EMPLOYEES IN THE CLASSIFIED SERVICE, ALTHOUGH THE EMPLOYEES THEMSELVES DID NOT ACQUIRE A CIVIL-SERVICE STATUS.

THE PRESIDENT, BY EXECUTIVE ORDER NO. 6084, DATED MARCH 27, 1933, CREATED THE FARM CREDIT ADMINISTRATION UNDER AUTHORITY OF TITLE IV, PART 2, OF THE ECONOMY ACT, AS AMENDED BY THE ACT OF MARCH 3, 1933, AND SECTIONS 5 (D) AND 7 OF THE EXECUTIVE ORDER TRANSFERRED TO THE NEW ORGANIZATION THE CROP PRODUCTION LOAN OFFICE OF THE DEPARTMENT OF AGRICULTURE TOGETHER WITH ITS PERSONNEL. THE CROP PRODUCTION LOAN OFFICE IS UNDERSTOOD TO HAVE BEEN AN ADMINISTRATIVELY CREATED ORGANIZATION TO ADMINISTER THE VARIOUS STATUTES AUTHORIZING THE SECRETARY OF AGRICULTURE TO MAKE LOANS FOR CROP PRODUCTION, WHICH PROVIDED A PERCENTAGE OF THE TOTAL APPROPRIATED FOR ADMINISTRATIVE EXPENSES INCLUDING PERSONNEL. THE EMPLOYEES THUS TRANSFERRED TO THE FARM CREDIT ADMINISTRATION WERE SUBJECT TO THE RESTRICTIONS AND LIMITATIONS OF THE ECONOMY ACT, INCLUDING SECTION 202, AND ARE SUBJECT TO SECTION 7 OF THE ACT OF MARCH 3, 1933, 47 STAT. 1515, PROVIDING AS FOLLOWS:

SEC. 7. NO ADMINISTRATIVE PROMOTIONS IN THE CIVIL BRANCH OF THE UNITED STATES GOVERNMENT OR THE GOVERNMENT OF THE DISTRICT OF COLUMBIA SHALL BE MADE DURING THE FISCAL YEAR ENDING JUNE 30, 1934: PROVIDED, THAT THE FILLING OF A VACANCY, WHEN AUTHORIZED BY THE PRESIDENT, BY THE APPOINTMENT OF AN EMPLOYEE OF A LOWER GRADE, SHALL NOT BE CONSTRUED AS AN ADMINISTRATIVE PROMOTION, BUT NO SUCH APPOINTMENT SHALL INCREASE THE COMPENSATION OF SUCH EMPLOYEE TO A RATE IN EXCESS OF THE MINIMUM RATE OF THE GRADE TO WHICH SUCH EMPLOYEE IS APPOINTED, UNLESS SUCH MINIMUM RATE WOULD REQUIRE AN ACTUAL REDUCTION IN COMPENSATION: PROVIDED FURTHER, THAT THE RESTORATION OF EMPLOYEES TO THEIR FORMER GRADES OR THEIR ADVANCEMENT TO INTERMEDIATE GRADES FOLLOWING REDUCTIONS OF COMPENSATION FOR DISCIPLINARY REASONS SHALL NOT BE CONSTRUED TO BE ADMINISTRATIVE PROMOTIONS FOR THE PURPOSES OF THIS SECTION. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO COMMISSIONED, COMMISSIONED WARRANT, WARRANT, AND ENLISTED PERSONNEL, AND CADETS OF THE COAST GUARD.

IN DECISION OF AUGUST 10, 1933, A-50301, 13 COMP. GEN. 44, TO THE ATTORNEY GENERAL, IT WAS ELD:

THERE IS NOTHING IN THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, PUBLIC NO. 67, OR ANY OTHER STATUTE AUTHORIZING OR REQUIRING APPLICATION OF THE INDUSTRIAL CODES TO CIVILIAN EMPLOYEES OF THE FEDERAL GOVERNMENT. * * *

ADOPTION OF A 5-DAY WEEK FOR THE PRISON INDUSTRIES IS PRIMARILY A MATTER OF ADMINISTRATION, BUT IN THE ABSENCE OF ANY STATUTORY PROVISION AUTHORIZING OR REQUIRING APPLICATION OF THE INDUSTRIAL CODES, THE HOURS OF LABOR AND RATES OF COMPENSATION OF CIVILIAN EMPLOYEES OF THE FEDERAL GOVERNMENT ENGAGED IN CONNECTION WITH PRISON INDUSTRIES REMAIN SUBJECT TO EXISTING LAWS, SUCH AS THE CLASSIFICATION ACT, AS EXTENDED TO THE FIELD SERVICE, THE SATURDAY HALF HOLIDAY LAW, AND THE PROVISIONS OF THE ECONOMY ACT, AS AMENDED, INCLUDING SECTION 215 LIMITING ANNUAL LEAVE OF ABSENCE WITH PAY TO 15 DAYS EACH YEAR EXCLUSIVE OF SUNDAYS AND HOLIDAYS.

LIKEWISE, THE RESTRICTION CONTAINED IN SECTION 7 OF THE ACT OF MARCH 3, 1933, SUPRA, AGAINST ADMINISTRATIVE PROMOTION, THAT IS, INCREASE IN COMPENSATION, DURING THE FISCAL YEAR 1934, REMAINS APPLICABLE TO THE EMPLOYEES IN QUESTION, AND PRECLUDES YOU FROM ADOPTING FOR GOVERNMENT EMPLOYEES THE MINIMUM WAGE FIXED BY THE INDUSTRIAL CODES IF RESULTING IN AN INCREASE IN COMPENSATION.

QUESTION (1) IS ANSWERED IN THE NEGATIVE.

REFERRING TO QUESTION (2) THE CIVIL-SERVICE STATUS OF THE EMPLOYEES HAS NO DIRECT BEARING ON THEIR SALARY STATUS. THAT IS TO SAY, THE SAME SALARY RESTRICTIONS MAY BE APPLICABLE ALIKE TO EMPLOYEES WITH AND EMPLOYEES WITHOUT CLASSIFIED CIVIL-SERVICE STATUS. THE EXECUTIVE ORDER OF MARCH 27, 1933, SUPRA, DID NOT OPERATE TO CHANGE THE SALARY STATUS OF EMPLOYEES TRANSFERRED TO THE SAME OR SIMILAR POSITIONS UNDER THE FARM CREDIT ADMINISTRATION.